The country ranks 30th on the list, losing its historic leadership in Latin America, which it had held since 2003, to Costa Rica.
According to him Annual Report on Economic Freedom 2023 of fraser institute Chile fell six places from Canada. It was ranked 30th in the ranking. .
Thus, the country recorded the third consecutive index decline, Lowest rating since 1990 the year in which the measurement began.
More chili lost historic leadership in Latin America It was overtaken by Costa Rica in 21st place, which it has held since 2003.
The study takes into account 2021 data and includes factors such as: size of government. Legal structure and property rights. currency stability. Freedom of international trade.and regulations among others.
Chile falls in economic freedom rankings
Chile’s decline in ranking is basically explained by the following reasons. Loss of scores on property rights, crime, and local currency value variables . The latter is explained by higher inflation and increased liquidity resulting from withdrawals from AFP and pandemic bonds.
Economists at Catholic University William Diaz “It is hoped that these impacts will reverse over time and we will be able to recover our position.”
According to Clapes, Macroeconomics Coordinator at the University of California, Herman Gonzalez another important factor is the “lack of protection for foreign investment” and asked the authorities to consider this item.
Economists at the University of Development carlos smith claimed that Chile had lost its regional leadership because “other countries are doing much better.”
Despite this, Chile improved in the item measuring the size of its government, rising from 45th to 37th place, as fiscal spending in 2021 decreased compared to the previous year.